Keith and Jim formed a partnership,with the partners sharing profits and losses equally.The partnership incurs a net loss of $5000 for the year.The entry to close the net loss will ________.
A) debit Income Summary by $5000
B) decrease Keith, Capital by $2500
C) increase Jim, Capital by $2500
D) decrease Jim, Capital by $5000

Question

Quizplus · Accepted Answer

Each partner's capital account will decrease by $2500 ( $5000 × 50%)

Keith and Jim Formed a Partnership,with the Partners Sharing Profits